I would like to invite discussion on the following observation:

"In manufacturing, the actual machine or equipment cycle time is usually a lot smaller than the overall lead time for the product/service from order to delivery".

If we were working on a manufacturing project cycle time or lead time reduction, then we should not be focussing our efforts (Six Sigma projects) in reducing the machine processing time but instead look at all the activities that happen before the manufacturing process (from order taking to supplier delivery of components) and after manufacturing (from transportation to inventory to stocking at the customer's warehouses).

For example, the average time to make a car by GM, Ford, Toyota is in the range of 30 hours. However, we all know that if we were to go to a dealer and request for a car with specific features it takes a lot longer than 1 day to get it.

This is one example where benefits that can be realized by working on transactional processes can yield a lot bigger benefit than working on the manufacturing processes.

What do you think?

Absolutely YES,

One has to look from a broder perspective. Acheiving TAKT/ Lead time / Cycle time should not be the goal objectives. END to END cycle have to be absorbed utilizing VSM and embrase both Six Sigma as well as LEAN.

The profit to any organization is realized how well you organize your skills and execute in plant eliminating all unnecessary wastages and not by increasing the INVOICE value.

Hidden factory exploration is a big boon to all profit aspires.

Best wishes,

Sathyanarayan Venkatesh

MBB; E1- LSS ; Certified LA ISO/ISMS

TSDO : Quality Program Manager

HP - India

Dear All,

We are diamond blade ( for cutting concrete and stone)manufacturing company. And also facing same problem. If we want to make one diamond blade, hardly it takes 8 hours, while our average cycle time is 21 days. I also want to know the methods to reduce it.

Dear Brijesh,

You may want to create a Value Stream Map (VSM) of your entire process from your supplier to your delivery of diamond blades to your customers. This will enable you to identify bottlneck processes / areas to work on.

SJ.

dear suesh,

But I doesn't know about VSM. Can you send detail to me.

thanks

Dear Brijesh,

Value Stream Mapping (VSM) is one of the advanced tools within Lean that can be used to make breakthrough transformation from the current state to a future state. It builds on the process map taught in Six Sigma courses and adds a lot more information to it. It includes both product flow and information flow in the same map. Certain metrics like Cycle Time (CT), Lead Time (LT), number of people working, quality issues, efficiency, etc. are highlighted on the map so that the viewer can quickly focus on the pain areas. At the bottom of the map is a Lead Time / Cycle Time chart which highlights bottleneck processes and the overall process cycle efficiency.

An excellent book (though manufacturing focussed) is Learning to See by Mike Rother and John Shook.

If you are interested in learning and applying VSM, it is a tool that is taught in our 2-Day Lean training course.

Best Regards,

SJ

Hi SJ,

I agree with your point. Creating SIPOC would help us to identify the processess that are involved before & after the Machine Process. This way the processes can be identified.

Once this is done, the Elapse/Effect Time analysis can be done for each process which would gives us a clear picture on where the delay is happening.

I trust the delay is happening from Procurement to Delivery in each Industry, hence, this is a right topic and the above analysis would help.

Please add your thoughts further.

Regards,

Yoganandan R.

Dear Yoganandan,

SIPOC is a high level process map that helps in identifying the key steps in the process along with the key stakeholders. A VSM is a lot more detailed map that can help with identification of problem areas.

SJ.

Dear SJ,

I have completed one Project as Lean champion wherein we have used the VSM for the entire manufacturing process to change the concept from "PUSH" to "PULL" system.

I have uploaded a pdf file in the group file folder named Old vs New VSM (May be useful to the group).

Glad to answer to the queries if any.

Regards,

Rajeev kamboj

Lean Champion

VOITH TURBO (P) LTD

Hyderabad

Dear Rajeev,

Thanks for posting the VSM of the before and after state. It looks like a lot of improvements were made. Was this a one year ahead future state VSM? Did you calculate the process cycle efficiency (PCE) using the cycle time / lead time analysis. Just curious, what sort of improvements you saw in your PCE?

Finally, if you made any A3's from this VSM, it may be beneficial for other participants to see how those are tied with your VSM analysis.

Good work.

Thanks,

SJ>

Dear SJ,

Yes, this was almost a year back future state VSM.

We have achieved the following with implementation of our New Planning/mfg system

1) value addition/per employee -> Increased by 35%

2) On time deliveries improved from Avg. 72% to > 95% (Hitting 100% last two months now)

3) Inventory reduced from 132 days to 106 days (we are a capital goods mfg co.)

Bye nor now,

Rajeev Kamboj

Hi SJ,

I have attached an example of VSM for NPDI Process (VSM example.ppt). Its a part of Lean-Sixsigma initiative for reducing the Product Development leadtime from 9.2months to 6months.

Will be useful for the group.

Regards,

Ram